Background of the Case
In the case of M/s Vedanta Ltd v. Principal Commissioner of State Tax (2025), the petitioner challenged a reassessment order passed under Section 73 of the OGST Act, 2017, demanding tax already settled under earlier proceedings.
Key facts:
- The petitioner had already paid tax, interest, and penalty as per previous orders.
- The department again initiated proceedings for the same amount under a different show cause notice.
- The petitioner argued that this was a re-litigation of a settled matter.
Key observations by the Orissa High Court
đź“Ś Legal citation: Vedanta Ltd. v. Principal Commissioner of State Tax
W.P.(C) No. 12513 of 2024, Orissa High Court
Date of Order: 10 July 2025
Why this judgment matters
Impact on businesses
- Protects taxpayers from repetitive demands for the same liability.
- Encourages finality in GST assessments.
- Offers strong ground for challenging duplicate SCNs or DRC-07 orders.
Expert View: How taxpayers should handle this
Tip: Always keep proof of tax payments, DRC-03 filings, and past orders.
- Refer to Section 73(9) and past compliance
- Cite principles of res judicata and this Orissa HC judgment
- Challenge reassessment with a reply or writ petition
“This is a relief for genuine taxpayers who often face mechanical reassessments without fresh evidence,” says a GST consultant at Efiletax.
Practical Steps if You Face Duplicate GST Demand
| Step | Action |
|---|---|
| 1 | Check if demand pertains to an already paid liability |
| 2 | Retrieve previous SCN, DRC-07, and DRC-03 documents |
| 3 | Respond under Rule 142(1A) with clear reference to settled liability |
| 4 | If ignored, consider writ petition under Article 226 citing Vedanta Ltd case |
| 5 | Highlight natural justice violation and lack of new grounds |
Related Blog
➡️ DRC-07 without Proper SCN: Illegal? Here’s What HC Said
FAQs on GST Reassessment
Q1. Can GST demand be raised again if already paid?
Not unless new facts or fraud are involved. Otherwise, it is barred by principles of finality and double taxation.
Q2. What legal remedies are available?
Filing a writ petition before High Court or appealing under Section 107 of CGST Act.
Q3. Does this apply to central GST authorities too?
Yes. The principle applies across CGST and SGST as the law is harmonised under GST.
Summary
The Orissa High Court ruled that re-levying a GST demand already paid amounts to double taxation. In Vedanta Ltd v. State Tax Officer, the Court set aside the reassessment order under Section 73 as it violated natural justice and lacked new grounds.
Final Word
This ruling protects honest taxpayers from redundant tax demands and reinforces the importance of procedural fairness. If you’re facing repeated GST demands, reach out to Efiletax for expert assistance in handling SCNs, reassessments, and appeals.